Ms Evelyn Jones:

The VAT laws are European. Their basis and foundation is laid down in European law. The idea is value-added tax, that the tax paid at the start of the supply chain, if it diminishes along the supply chain, can be recouped. The only way of preventing the retailer from recouping 23% of the loss is by implementing a ban on below-cost selling. That is the only way one can stop the VAT from being reclaimed legally.